Summer 2011 State of the Ponte Vedra Beach & Jacksonville Beach Real Estate Market Report
You've probably been hearing a lot of conflicting information regarding the housing market. Some of the national sound bites are encouraging, and some, well...not so much. The local real estate trends provide a more reliable and truer view of what's happening here in our backyard. When reviewing market indicators, it's important to realize that trends vary by indicator and market recovery won't occur everywhere all at once. Let's breakdown what happened in the Ponte Vedra Beach and Jacksonville Beaches markets over the second quarter of 2011:
Overall, buyers in Northeast Florida absorbed homes more quickly than last year. Month Supply of Home Inventory is down 28.5% to an 8.4 month supply. New listings also decreased almost 20%. Pending home sales (an indicator of homes that are scheduled to close in the near future) are up 34%. The Housing Affordability Index (HAI) continued to climb for the Jacksonville area. At the end of the second quarter, the HAI was up 6%, suggesting that buyers have a great deal of "buying power."
Some of the individual Jacksonville Beaches areas trends were:
- Inventory continued to drop with 22% fewer homes on the market this summer than last.
- The number of homes sold as stressed sales dropped from over 30% to less than 22%.
- Average sale price is up! (Yes, you read that correctly.) The median sale price of homes sold in Ponte Vedra Beach in June was well over $300,000.
- The luxury market continues to show signs of growth.
- Average sale price is up! The median sale price on the 418 homes that have sold so far this year was up almost 17% to an average sale price of $224,500.
- Days on the market is down slightly to just over 3 months.
- Inventory of available homes is down 30% from last year to an 8 month supply of homes for sale.
- Average sale price is up (again) with a median sale price of $250,000.
- Fewer homes have sold when compared to last year (67 vs 85).
- New listings are down 21% from last year as is the inventory of homes for sale.
- Average sale price is down 10% for the year to $150,000.
- Closed sales are down slightly for the first half of the year (5%).
- The number of new listings is down almost 25% and there is an inventory of about 7 months of homes on the market.
As you can imagine, distressed sales (short sales and foreclosures) continue to negatively impact our real estate market by dragging down sale prices. This trend will likely continue through the near future. Rental properties are in very high demand and investors have reacted by getting back into the market. Right now real estate investors are purchasing more houses than those buyers who are looking for a primary home.
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